The purpose of tokens - Deepstash

The purpose of tokens

Most tokens are used with decentralised applications (dApps). When developers create their tokens, they can be used to activate features of the application they were designed for.

Some tokens are created to represent a physical thing. If you want to sell your house using a smart contract, you can't physically put your house into the smart contract, but you can use a token that represents your house.

For example, WePower (WPR) uses a token that represents electricity. Users can buy and sell electricity on the blockchain using smart contracts.

14

215 reads

CURATED FROM

IDEAS CURATED BY

micaldw

Hydrographic surveyor

People who are new to cryptocurrency often confuse the term "token" and "coin". This guide defines the two terms and provides some examples for a better understanding.

The idea is part of this collection:

Getting started with Cryptocurrency

Learn more about crypto with this collection

Understanding the basics of cryptocurrency

How to store cryptocurrency securely

Risks and benefits of investing in cryptocurrency

Related collections

Similar ideas to The purpose of tokens

What is Chainlink (LINK)?

What is Chainlink (LINK)?

Chainlink is the most widely used oracle solution for securely connecting smart contracts to the real world. With Chainlink, developers on any blockchain can access tamper-proof, high-quality external inputs to enhance their smart contract applic...

The risks of liquidity pools

  • If you provide liquidity to an AMM, you’ll need to be aware of a concept called impermanent loss. In short, it’s a loss in dollar value compared to HODLing. If you’re providing liquidity to an AMM, you’re probably ex...

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates